
GBR will bring a step-change in operational efficiency – but how?
As the industry prepares for the launch of Great British Railways (GBR), there is an opportunity to improve operational efficiency, reduce cost and improve passenger services.
Richard Daley is a Director at Vendigital, specialising in Transportation & Infrastructure. He recently shared his insights with Infrastructure Intelligence.
Construction firms could be making more of opportunities to reduce costs and drive profitability by undergoing a cost-led ESG (environmental, social and governance) transformation
Recent report data, drawn from ONS figures, suggests that the number of construction firms that have been liquidated since the pandemic began last March is higher than those in hospitality and retail, both of which were previously considered the worst-hit sectors.Â
At first glance, this finding is perhaps surprising, particularly as many construction sites managed to stay open for much of the crisis, with social distancing measures in place. However, construction businesses have been operating at low margins for many years, and the effects of the pandemic on productivity, profitability and cash flow have made matters worse. Â
To escape the downward pressure on margins and move to a more resilient operating model, business leaders in the sector recognise the need to focus on cost reduction and control, putting it at the heart of everything they do. But how many of them have considered using this cost-driven approach to improve their competitiveness while investing in a green transformation?
There are many reasons why now is the right time for businesses to reposition themselves as environmentally and socially responsible. Growing consumer awareness of the risks posed by climate change, combined with an increasing legislative push to achieve the government’s net zero carbon emissions by 2050 target, is already impacting public procurement and existing infrastructure programmes. Investors are also actively looking for evidence of ESG commitments before funding new projects.Â
Recognising the growing focus on ESG, the Construction Leadership Council has recently called for industry support to drive the delivery of net zero in the built environment. As part of this, they have highlighted the importance of measuring each project’s carbon emissions and its impact on communities and local economies. The government has also confirmed its intention to consult on plans to share quarterly data on the industry’s progress to net zero.
To ensure their survival in both the near and longer term, construction firms must not only focus on addressing margin erosion by improving and controlling costs, they must also elevate ESG commitments and reporting. When done well, taking control of the cost base and minimising waste throughout a firm’s operations and across its supply chain, can help to improve margins and boost profitability significantly. It can also unlock opportunities to further enhance enterprise value by establishing new social value partnerships, reducing the business’s carbon footprint and sourcing sustainable materials and equipment.Â
Cost leadership is critical to delivering a green transformation and it can’t be achieved without extracting insights from data. As well as having a detailed understanding of their cost base and where value lies, businesses must create new bespoke ways of measuring their ESG performance, drawing on the industry frameworks that are emerging. Â
The pandemic has accentuated the cashflow and margin pressures that many construction businesses are experiencing. However, the crisis has also presented an opportunity to reduce costs while creating a greener and more responsible operating model that is built to last.Â
Get in touch
Related Insights
As the industry prepares for the launch of Great British Railways (GBR), there is an opportunity to improve operational efficiency, reduce cost and improve passenger services.
Recent troubles facing many train operators have underlined the need for transformative change. Urgent intervention is needed to restore services and reset the industry on route to a more profitable future.
Matthew Flynn discusses how transformation of the rail industry’s approach to seat utilisation could benefit both the TOCs and passengers.
Subscribe to our newsletter
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More
Name | Domain | Purpose | Expiry | Type |
---|---|---|---|---|
wpl_user_preference | vendigital.com | WP GDPR Cookie Consent Preferences | 1 year | HTTP |
wpl_viewed_cookie | vendigital.com | This cookie stores information about your cookie consent state. | 1 year | HTTP |
Name | Domain | Purpose | Expiry | Type |
---|---|---|---|---|
_gcl_au | vendigital.com | Used by Google AdSense for experimenting with advertisement efficiency across websites using their services. | 3 months | --- |
__hstc | vendigital.com | Hubspot marketing platform cookie. | 6 months | HTTP |
__hssrc | vendigital.com | Hubspot marketing platform cookie. | 52 years | HTTP |
__hssc | vendigital.com | Hubspot marketing platform cookie. | Session | HTTP |
_obid | vendigital.com | This cookie is set when a user lands on the site, containing a unique ID relating to the email that was clicked on. | 365 days | HTTP |
_obid_visit | vendigital.com | This is used to identify a site session across multiple pages. | Session | HTTP |
Name | Domain | Purpose | Expiry | Type |
---|---|---|---|---|
_ga | vendigital.com | Google Universal Analytics long-time unique user tracking identifier. | 2 years | HTTP |
_gid | vendigital.com | Google Universal Analytics short-time unique user tracking identifier. | 1 days | HTTP |
_gat_gtag_UA_29623111_7 | vendigital.com | Used to analyse visitor browsing habits, flow, source and other information. | Session | --- |
IDE | doubleclick.net | Google advertising cookie used for user tracking and ad targeting purposes. | 2 years | HTTP |
mp_a36067b00a263cce0299cfd960e26ecf_mixpanel | vendigital.com | Allow us to analyse how users use our site | 1 year | HTTP |
_gcl_aw | vendigital.com | --- | 90 days | HTTP |
Name | Domain | Purpose | Expiry | Type |
---|---|---|---|---|
hubspotutk | vendigital.com | HubSpot functional cookie. | 6 months | HTTP |
Name | Domain | Purpose | Expiry | Type |
---|---|---|---|---|
_GRECAPTCHA | www.google.com | Helps protect our clients and our systems from cyber spam and abuse. The information collected in connection with your use of the service will be used for improving reCAPTCHA and for general security purposes. It will not be used for personalised advertising by Google. | 6 months | --- |
ppwp_wp_session | vendigital.com | --- | Session | --- |
test_cookie | doubleclick.net | A generic test cookie set by a wide range of web platforms. | Session | HTTP |
pnctest | vendigital.com | This is set by a third party library of Pubnub to test if cookies are supported by the browser. | 2 years | HTTP |
traincalc | vendigital.com | Supports the UK Train Profitability Calculator advanced functionality | 3 months | HTTP |
rs6_overview_pagination | vendigital.com | Cookie is set by Slider Revolution, tracks downtime and other browser related issues. | Session | HTTP |